Etisalat posts $2.29bn profit for 2016

ABU DHABI, March 8, 2017

Etisalat, the UAE's leading telecom service provider, reported a consolidated net profit after federal royalty of Dh8.4 billion ($2.29 billion) for 2016, resulting in a net profit margin of 16 per cent and year over year increase of 2 per cent.

In the fourth quarter, consolidated net profit after federal royalty amounted to Dh2.2 billion ($600 million) resulting in a net profit margin of 17 per cent.

The consolidated revenues for 2016 amounted to Dh52.4 billion ($14.27 billion), an increase of 2 per cent compared to the previous year. The consolidated revenues for the fourth quarter amounted to Dh12.9 billion ($3.51 billion), representing an increase of 3 per cent year over year.

Earnings per share (EPS) amounted to Dh0.26 in the fourth quarter of 2016 and Dh0.97 for the full year of 2016. The

proposed final dividend payout of 40 fils per share for 2016 represents a total dividend payout of 80 fils for the full

year and a dividend payout ratio of 83 per cent, it said.

In the UAE, revenue in the fourth quarter increased year on year by 14 per cent to Dh7.9 billion. For the full year,

the fourth quarter totalled Dh6.2 billion and resulting in EBITDA margin of 48 per cent.

Etisalat chairman Eissa Mohamed Al-Suwaidi said: “Etisalat Group continues to strengthen its position as one of the leading operators in emerging markets. In the face of global economic pressure, Etisalat Group has, once again, demonstrated strong performance, evidence of a business that is both robust and resilient.

“In terms of achievements, 2016 was a very important period for ‘Etisalat Group’ as we laid key foundational steps in our journey towards digital transformation. We also continued our relentless efforts to provide our customers with a wide portfolio of innovative products and services, integrated solutions, and smart platforms.

“Etisalat Group will continue to rise to the challenge and deliver against its digital transformation agenda, which will entail a change in the way we do business, for the ultimate endeavor of enhancing our customers’ experience and bringing more value to them. Etisalat will also continue to leverage its portfolio and strong financial position to capture the opportunities and mitigate the challenges facing the sector.”

Engineer Saleh Al Abdooli, group chief executive officer, said: “Etisalat Group is in a stronger position today to seize the opportunities and overcome the challenges of our fast-evolving industry, and move forward with confidence as a leading provider in our operating markets. Our financial results are a testimonial of the group resilience and ability to mitigate the pressures arising from the global economic slowdown.”

He added: “Etisalat Group has maintained its high ratings with international credit agencies, and is serving a large and strong customer base across its international footprint, with a considerable potential to grow further”

“In 2016 we have crossed another critical milestone in our journey as we started to pursue an ambitious agenda in the digital space; the same is a necessity in order to maintain our leadership position in local and international markets as digital becomes the next big thing. Our focus remains on providing governments, businesses and individuals with innovative, simple, and relevant solutions that harness the power of technology and maximizes their potential.”

Other 2016 highlights for the company are:
• Aggregate subscriber base reached 162 million.
• The UAE, Etisalat’s home market, ranked number one globally for the highest fibre network connectivity, with household penetration of 93.7 per cent.
• Acquisition of the 4G Services licence in Egypt, 3G in Togo, and universal licence in Ivory Coast.
• Etisalat Group completed the sale of its shareholding in Canar Telecom in Sudan, as part of portfolio optimisation.
• Launched a new Business Unit – Etisalat Digital that oversees the group digital transformation agenda;
• Etisalat was the first in the region to conduct live 5G trials, and to launch a live and operational Telco Cloud infrastructure as part of its virtualization plans.
• Announced as Premier Partner for telecommunication and digital services for Dubai Expo 2020;
• Delivered integrated Smart City project Dubai Parks & Resorts, which opened in 2016;
• Etisalat launched commercially VoLTE service; featuring high definition voice and video browsing;
• Etisalat expanded its mobile commerce capability with the launch of its new ‘Etisalat Wallet’ service in the UAE. - TradeArabia News Service